UPDATE - Binance investigates 'potential security issue' as around $3B frozen

REVISES HEADLINE, DECK, LEDE, ADDS REMARKS

By Ilayda Cakirtekin

ISTANBUL (AA) - Major cryptocurrency exchange Binance said Thursday that it is investigating a "potential security issue" while around $3 billion worth of digital assets were frozen.

"Our teams are aware of reports of a potential security issue and are actively investigating. User funds are completely safe," it announced on the US social media platform X.

It reaffirmed that its security teams were reviewing all relevant information with "urgency" and called on users to remain cautious of scams and to avoid unofficial links, messages or requests for account information.

"User funds are safe! It does look like a hack on Binance. Appreciate the quick freeze from Tether (~$971m) and Circle (~$823m)," Binance co-founder and CEO Changpeng Zhao wrote on X.

Binance also noted that it temporarily disabled trading of tokens listed on Binance Alpha while it addressed the security issue.

"As part of our ongoing security measures, Binance Alpha trading has been temporarily suspended - CEX Buy Token/Alpha instant/CEX purchase prediction marketing using fund in spot wallet," it said.

"The current verified total frozen amount is around $3 billion," Binance further announced in its latest update on the security issue.

It reaffirmed continued work with law enforcement, issuers, blockchain intelligence firms and industry partners "to trace and freeze additional assets."

Binance co-founder Yi He also reaffirmed on X that user funds were safe and that they would cover all hacking losses.

"Deposits and withdrawals are temporarily suspended while our team conducts security checks, freezes funds, and works with law enforcement," she added.

İlayda Çakırtekin